Shriram NIFTY 1D Rate Liquid ETF (Growth) launched: 5 things you need to know

Kartik Jain, MD & CEO, Shriram AMC

Shriram Asset Management Company (Shriram AMC) on June 26 announced the launch of Shriram Nifty 1D Rate Liquid ETF (Growth), an open-ended Exchange Traded Fund tracking the Nifty 1D Rate Index.

The Shriram Nifty 1D Rate Liquid ETF (Growth) New Fund Offer will be open for subscriptions from July 1, 2024 till July 3, 2024. Investors can apply through their securities brokers or by depositing physical forms at their nearest CAMS Investor Service Centre.

Kartik Jain, MD & CEO, Shriram AMC, said, " With the introduction of the Shriram Nifty 1D Rate Liquid ETF (Growth), we offer an effective cash management vehicle that combines the advantages of better returns, higher liquidity and relatively lower risk. This ETF is ideal for investors wishing to increase their returns on idle capital while reducing risk by investing in stable and secure overnight products. Active traders will get the added benefit of margin pledge.”

Here are 5 things you need to know about Shriram Nifty 1D Rate Liquid ETF (Growth):

-- The Shriram Nifty 1D Rate Liquid ETF (Growth) provides investors with easy cash management with high liquidity, relatively low interest rate risk and relatively low credit risk. They can earn higher returns by investing their idle cash in this ETF seamlessly through their demat account, instead of leaving it in their savings account. The Growth plan delivers compounding of returns without the need to track daily fractional dividends, with capital gains tax being applicable only on redemption. Returns can easily be tracked through the growth NAV published daily on the Shriram AMC website at www.shriramamc.in/SNifty1dETF.

-- The fund has lower interest rate volatility as it invests only in the overnight money market, with lower risk due to just a one-day exposure to liquid instruments backed by government securities.

-- Along with liquidity and steady returns, Shriram Nifty 1D Rate Liquid ETF (Growth) will also be made eligible as collateral for margin trading giving greater convenience to active equity investors.

-- The USP of the Shriram NIFTY 1D Liquid ETF (Growth) includes the upside of higher returns vs savings, seamless cash management with margin pledge, and price appreciation in NAV with growth plan.

-- The minimum subscription during the NFO is Rs 1,000 or multiples thereof, and the fund managers will be Deepak Ramaraju and Gargi Bhattacharyya Banerjee.